Bajaj Housing Finance Files for Rs 7,000 Crore IPO with Sebi
Bajaj Housing Finance Files for Rs 7,000 Crore IPO to Meet RBI Regulations
Bajaj Housing Finance has made a significant move in the financial market by filing preliminary papers with the capital markets regulator Sebi to raise Rs 7,000 crore through an initial public offering (IPO). The proposed IPO includes a fresh issue of equity shares worth up to Rs 4,000 crore and an offer for sale (OFS) of equity shares amounting to Rs 3,000 crore by its parent company, Bajaj Finance, as stated in the draft red herring prospectus (DRHP).
The decision to go public comes as a strategic move to comply with the Reserve Bank of India’s (RBI) regulations, which mandate upper-layer non-banking finance companies to be listed on stock exchanges by September 2025.
The funds raised from the IPO will be utilized to strengthen the company’s capital base and meet future capital requirements. Bajaj Housing Finance, a non-deposit-taking housing finance company registered with the National Housing Bank since September 2015, specializes in providing financial solutions for purchasing and renovating residential and commercial properties.
Identified as an “upper layer” NBFC by the RBI, Bajaj Housing Finance offers a range of mortgage products including home loans, loans against property, lease rental discounting, and developer financing. In the financial year 2023-24, the company reported a net profit of Rs 1,731 crore, reflecting a growth of 38% from the previous year.
Recent listings of housing finance companies Aadhar Housing Finance and India Shelter Finance have set a positive precedent in the market. The board of Bajaj Finance has already approved the sale of shares worth Rs 3,000 crore in the IPO of Bajaj Housing Finance.
Leading financial institutions such as Kotak Mahindra Capital Company Ltd, BofA Securities India Ltd, SBI Capital Markets Ltd, Goldman Sachs (India) Securities Private Ltd, and JM Financial Ltd have been appointed as the book-running lead managers for managing the company’s public issue.
The IPO of Bajaj Housing Finance is expected to generate significant interest in the market as investors look to capitalize on the growth potential of the housing finance sector.
